Right now, Tesla Motors [NSDQ:TSLA] has the high-end electric market all to itself—but that's about to change.
In an interview with Germany's Auto Moto und Sport, development chief Thomas Weber revealed company is working on a vehicle to battle head-to-head with Elon Musk's sexy sedan. At over 300 miles, range would be impressive, and the automaker's facility with luxury means any competitor would almost certainly outclass Tesla's tech-heavy, yet hardly sumptuous interiors.
Importantly, the forthcoming vehicle is no knee-jerk reaction to Tesla's efforts.
Mercedes-Benz has been developing electric cars for decades, and built its first all-electric vehicle in 1906. Currently, it counts two wholly-owned subsidiaries which build batteries under its corporate umbrella, one of which has designed a home-powering battery similar to Tesla's Powerwall. At one point, it owned nearly ten percent of the California startup.
Factor in the German giant's established client base and robust dealer network, and it looks like it could quickly start eating Tesla's lunch. While we don't expect the as-yet unnamed model to be anywhere near as cool as the SLS AMG Electric Drive which was revealed at the 2012 Paris Auto Show, there's no question Mercedes-Benz is going to come out swinging.
But how long "soon" is remains to be seen. More details on the new electric sedan when we have it.